KRS 161.5465: Member with twenty years' service credit may purchase five years'

service credit -- Exceptions.

On or after August 1, 1998, a member of the Teachers' Retirement System in active

contributing status who has a minimum of twenty (20) years of s ervice credit may

purchase up to a maximum of five (5) years of service credit that is not otherwise

purchasable under any of the provisions of KRS 161.220 to 161.716 and that meets the

definition of nonqualified service as provided in Section 1526 of the Federal Taxpayer

Relief Act of 1997. The member shall pay the full actuarial cost of the service credit as

provided in KRS 161.220(22). The payment shall not be picked up by the employer as

described in KRS 161.540(2), and the member's payment shall be cre dited to the

member's contribution account and shall be considered accumulated contributions of the

member. Payment by the member may be by lump sum or by installment payments as

provided in KRS 161.597. Notwithstanding any other statute to the contrary, t he

Kentucky Teachers' Retirement System shall recognize nonqualified service credit

purchased with another retirement system only to the extent that the member had an

equivalent number of full months of active employment in the position covered by the

other retirement system during the period that the nonqualified service was purchased.

This section shall not apply to individuals who become members on or after July 1, 2008,

except that a teacher of a local school board may purchase up to ten (10) months of

service under this section if the teacher is retiring and has completed the prior school year

with at least twenty -six (26) years and two (2) months of service but less than twenty -

seven (27) years of service.